Research On Motivation And Risk Analysis Of Internet Video Enterprise M & A

The rapid development of the Internet has driven the rise of online video industry. Online video industry turns from a new industry into a prevailing one. With 10 years’ development from 2006, Internet video industry in China has gone through ups and downs. Including the government raised the entry barrier, the quit of venture capital in condition of subprime crisis and other events. In 2010, China has promulgated a series of legal regulations aim at standardizing the Internet video content. It caused the major video sites begin to focus on strengthening copyright protection and construction of genuine content. Due to excessive copyright fees and shrinking advertising revenues, the Internet video industry embarked on spending huge sums of market sharing. However, the problem of profit difficulties and shortage of funds has not been properly resolved. And the industry generally falls into the state of operating losses, many companies have chosen the way of Mergers and acquisitions to expand the scale, enhance overall competitiveness and bailing out. Is it real that Mergers and acquisitions is the only way for Internet video industry in China? Why Internet video industries in China choose mergers and acquisitions? How can the industry identify and avoid the risk of Mergers and acquisitions? Focus on the problems above, the paper regards the operating characteristics and competition status of Internet video industry as the starting point, making a comprehensive discussion of Internet video enterprise acquisition motivation and the risk of Mergers and acquisitions. The paper chose the case of Mergers and acquisitions of Youku and Tudou as research subject and did comprehensive analysis and discussion. The paper used a combination of integrating point and sphere to analyze and discuss the Internet video enterprise acquisition motivation and the risk of Mergers and acquisitions.First, the paper elaborated writing background and significance. Based on it, research Status of enterprise acquisition motivation and risk analysis were discussed. The paper analyzed theoretical research results of merging causes and risks in different views and also elaborated the research method, innovation and structural framework of this article and shortcomings. Secondly, the paper analyzed the related the theory of Mergers and acquisitions. It laid the theoretical foundation for the writing of this paper. At the same time, the paper analyzed Internet video industry, and it described in detail for the industry characteristics, including the definition of the industry chain, value chain, enterprises in the industry classification and business forms industry, and so on. Furthermore, the typical case of Youku and Tudou’ mergers and acquisitions were discussed in depth. According to the basic condition of the case, we analyzed the reason why Youku and Tudou choose merger, as well as combining mode, the financial situation before and after merger of both sides, risk identification, risk control measures, effectiveness of post-merger integration for Youku during the process of merging Tudou. At last, based on the combination of a comprehensive analysis of the case, the paper makes corrective recommendations and risk prevention measures for Internet video mergers and acquisitions. And we discussed the situation of the future development of the Internet video industry and get the conclusion of the study.Merger of Youku and Tudou is a meaningful M & A case in Internet video industry of China. Through analyzing the case, the paper will provide some theoretical guidance and practical recommendations for those Internet video industries which are or will be involved in Mergers and acquisitions and other similar trades. And reduce Mergers and acquisitions risk, enhance the competitiveness of enterprises, promote Internet video enterprise’ reform and development through rational analysis of motivation.